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Asia Property Report

Daily, Bangkok
Up-to-date news and coverage of industry trends and innovations from Asia with an in-depth special focus on real estate hot spots, as well as key interviews with important industry figures.

Tourist numbers on the rise for Da Nang

Apr 23, 2012
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Larger cruise ships have contributed to an increase in Vietnam's tourism industry.

Statistics provided by the Da Nang Department of Culture, Sport and Tourism show that visitor numbers to Da Nang saw a dramatic increase in the first quarter of 2012. On both q-0-q (31.9 per cent) and y-o-y (35 per cent) the number of tourists visiting Da Nang rose to almost 590,000 in this first quarter.

Contributing to a 94.4 per cent increase in the number of visitors arriving by air was the new international airport which opened a the end of 2011. The airpot is also scheduled to host, amongst others, charter flights from Russia by May 2012.

"It is great to see the new airport in Da Nang operating efficiently and already contributing to the Da Nang economy,” said senior manager of Research and Consulting at CBRE Vietnam Adam Bury. "Da Nang has a growing range of tourist facilities, including leading golf courses and hostels from international designers and operators, and thus new airport terminal is another piece of jigsaw which is contributing to the growth of Da Nang as a tourism hub.”

Arrivals to Da Nang by sea increased by 260.8 per cent y-o-y, in part a reflection of larger cruise ships, such as the SuperStar Aquarius, operated by Star Cruises, choosing to dock in Da Nang.

CBRE noted that despite the increase in tourism, the hotel sector, which has seen much new supply in recent years, is continuing to take time to bed in-particualry at a time of the year considered to be a low season.

During the quarter is was noted that average occupancy across four and five star hotels was below 50 per cent  with the five start sector seeing a 5.3 per cent point increase in occupancy on a y-o-y basis, whilst the four star sector saw an almost 14 per cent point decrease in occupancy on a y-o-y basis. It was noted that the suspected reason for the decline in four star occupancy was the new supply that had become operational in the past couple of quarters.

“Despite it being the traditional holiday season in Vietnam with the calendar New Year and Tet celebrations, Q1 is outside of the high season for the Da Nang tourism market and thus an occupancy rate of below 50% is not unexpected. Importantly we have seen tourism numbers rise and in the five star sector we have seen this reflected in y-o-y occupancy increases,” said Thao Le, research executive at CBRE Vietnam in Da Nang said. “We have seen ADR’s reduce in four and five star hotels on a y-o-y but this as again expected as new hotels are still going through an initial bedding in period and are competing with one another to become established over the longer term.”

CBRE Vietnam noted, that whilst challenges remain in the Vietnamese hospitality sector, the increased numbers of tourists visiting Da Nang and the increased y-o-y occupancy at five-star hotels was a definite positive for the market.